The one year anniversary of the Sichuan earthquake is approaching ... so time for an
Earth quake theme park?
Another area is building a quake ruins park ... along with a "tourist reception center, cemetery, a memorial and a museum of folkways and culture."
http://news.xinhuanet.com/english/2009-05/05/content_11315604.htm
Showing posts with label china. Show all posts
Showing posts with label china. Show all posts
Tuesday, May 5, 2009
Chinese investment in Taiwan
It's surprising to see a Chinese company investing in Taiwan and even more surprising to see Beijing agree to Taiwan's participation in a World Health Organization meeting.
The two countries haven't been friends since 1949 and in the 1970s mainland China bumped Taiwan out of the U.N.
The new investment is China Mobile, a Chinese government-owned wireless carrier. They have invested heavily in Taiwan's third-biggest phone company.
According to the WSJ, the two countries also signed a series of agreements "easing limits on investment between them and establishing the first regular two-way air and shipping traffic in six decades."
http://www.marketwatch.com/news/story/taiwan-stocks-surge-further-china/story.aspx?guid={372BD0A2-525E-4DF8-8EFD-2059578DD722}&dist=msr_1
The two countries haven't been friends since 1949 and in the 1970s mainland China bumped Taiwan out of the U.N.
The new investment is China Mobile, a Chinese government-owned wireless carrier. They have invested heavily in Taiwan's third-biggest phone company.
According to the WSJ, the two countries also signed a series of agreements "easing limits on investment between them and establishing the first regular two-way air and shipping traffic in six decades."
http://www.marketwatch.com/news/story/taiwan-stocks-surge-further-china/story.aspx?guid={372BD0A2-525E-4DF8-8EFD-2059578DD722}&dist=msr_1
Is China protectionist or helping foreign business?
An April 28th Wall Street Journal headline caught my eye, "Foreign Businesses Say China is Growing More Protectionist", then two days later the same paper proclaimed, "China's Stimulus Spurs U.S. Business." So which is it?
The American Chamber of Commerce stated that "protectionism was one of its major concerns this year" and the European Chamber of Commerce worries that Chinese companies want to "create monopolies or oligopolies and have less competition."
Chinese officials counter that Western countries anti-dumping laws and the U.S. attempt to insert a "buy American" clause in the U.S. stimulus bill aren't any different than their own attempts to stimulate their local economy.
China's $585 billion stimulus is largely being spent on Chinese-only projects, such as the high-speed rail project between Beijing and Shanghai. The 4/30 WSJ suggests that the Chinese-only clauses are actually helpful in that the Chinese are not dumping cheap steel on the world markets which would send prices in a spiral.
American firms, in China, directly benefiting from the Chinese stimulus include excavator and tire makers and fast-food chains. China's infrastructure spending went into overdrive when the stimulus was announced and many projects were fast-tracked. The U.S. is unable to match the pace of the Chinese building.
Firms not benefiting are FedEx and DHL who got shut out of China when a new postal law banning "foreign companies from delivering express mail inside China" was passed a few weeks ago.
The American Chamber of Commerce stated that "protectionism was one of its major concerns this year" and the European Chamber of Commerce worries that Chinese companies want to "create monopolies or oligopolies and have less competition."
Chinese officials counter that Western countries anti-dumping laws and the U.S. attempt to insert a "buy American" clause in the U.S. stimulus bill aren't any different than their own attempts to stimulate their local economy.
China's $585 billion stimulus is largely being spent on Chinese-only projects, such as the high-speed rail project between Beijing and Shanghai. The 4/30 WSJ suggests that the Chinese-only clauses are actually helpful in that the Chinese are not dumping cheap steel on the world markets which would send prices in a spiral.
American firms, in China, directly benefiting from the Chinese stimulus include excavator and tire makers and fast-food chains. China's infrastructure spending went into overdrive when the stimulus was announced and many projects were fast-tracked. The U.S. is unable to match the pace of the Chinese building.
Firms not benefiting are FedEx and DHL who got shut out of China when a new postal law banning "foreign companies from delivering express mail inside China" was passed a few weeks ago.
Thursday, April 30, 2009
New transparency for China
Mexico has been critical of China for quarantining 71 Mexicans for the swine flu despite the individuals being asymptomatic. The Mexicans were flown back to Mexico re a chartered plane on Tuesday.
China also quarantined 2 U.S. (it's not clear if they had flu-like symptoms) and 29 Canadians (connected to the University of Montreal) despite their lack of symptoms.
274 guests remain quarantined in a Hong Kong hotel after a Mexican traveler tested for the virus.
It may sound like a bit much but China's response, and openness, is a dramatic improvement over their treatment of the SARS outbreak. When SARS spread to Hong Kong and world, it was discovered that Chinese officials had hidden the outbreak of SARS for four months.
Comparisons are being made to China's quick response to the Sichuan earthquake, especially as the country reflects on that disaster's one year anniversary.
http://www.nytimes.com/2009/05/01/world/asia/01china.html?partner=rss&emc=rss
http://www.cbsnews.com/stories/2009/05/05/health/main4991388.shtml
China also quarantined 2 U.S. (it's not clear if they had flu-like symptoms) and 29 Canadians (connected to the University of Montreal) despite their lack of symptoms.
274 guests remain quarantined in a Hong Kong hotel after a Mexican traveler tested for the virus.
It may sound like a bit much but China's response, and openness, is a dramatic improvement over their treatment of the SARS outbreak. When SARS spread to Hong Kong and world, it was discovered that Chinese officials had hidden the outbreak of SARS for four months.
Comparisons are being made to China's quick response to the Sichuan earthquake, especially as the country reflects on that disaster's one year anniversary.
http://www.nytimes.com/2009/05/01/world/asia/01china.html?partner=rss&emc=rss
http://www.cbsnews.com/stories/2009/05/05/health/main4991388.shtml
Monday, April 27, 2009
China's market and counterfeits
China is the world's largest cell phone market. And growing. So that's why counterfeit, or shanzhai, phones are causing a stir. Hi-Phone's can be made or $20 and shipped all across the world. You can expect that Nokia, Motorola and Apple would be complaining to the Chinese government, but the biggest impact may come from China's own cellphone makers.
Not much will change with the counterfeiters until China's own businesses feel the pinch and demand patent laws and the government to protect their intellectual property.
http://www.nytimes.com/2009/04/28/technology/28cell.html
Not much will change with the counterfeiters until China's own businesses feel the pinch and demand patent laws and the government to protect their intellectual property.
http://www.nytimes.com/2009/04/28/technology/28cell.html
Monday, April 20, 2009
Car emissions and solar mobile phones
All eyes (and many hopes) are on the Shanghai Auto Show. Just about the only ones in the world buying cars right now are the Chinese, thanks to government incentives that include a tax cut and cash-refunds.
Since the automakers are excited about the number of buyers they have begun designing cars that the Chinese want ie. better gas mileage. Meanwhile, Chinese emission standards are non existent, so manufacturers aren't bothering with the annoyance. So much for global warming.
On the plus side, Sharp has designed a sun-powered, waterproof mobile phone that goes on sale in Japan on Monday that is being touted as helping to reduce carbon dioxide emissions.
I don't think the cell phone usage will quite make up for the new cars in China.
http://english.aljazeera.net//news/asia-pacific/2009/04/20094209482632287.html
http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_KDDI_SOLAR_PHONE_ASOL-?SITE=YOMIURI&SECTION=HOSTED_ASIA&TEMPLATE=ap_national.html
Since the automakers are excited about the number of buyers they have begun designing cars that the Chinese want ie. better gas mileage. Meanwhile, Chinese emission standards are non existent, so manufacturers aren't bothering with the annoyance. So much for global warming.
On the plus side, Sharp has designed a sun-powered, waterproof mobile phone that goes on sale in Japan on Monday that is being touted as helping to reduce carbon dioxide emissions.
I don't think the cell phone usage will quite make up for the new cars in China.
http://english.aljazeera.net//news/asia-pacific/2009/04/20094209482632287.html
http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_KDDI_SOLAR_PHONE_ASOL-?SITE=YOMIURI&SECTION=HOSTED_ASIA&TEMPLATE=ap_national.html
Friday, April 17, 2009
China's growth
The numbers are out and China's GDP grew 6.1% last quarter. Down from the 13% 2007 numbers, China is not in bad shape. Here are some important attributes:
* China's financial system is healthy and the banks are lending
* China has a fiscal surplus and is financing it's stimulus through that
China's biggest challenge is to increase domestic demand so the country is not as export reliant. This is a tall order. Yes, there were record car sales in March, but the Chinese do not have health plans or social services and continue to sock money away for a rainy day.
http://english.aljazeera.net//business/2009/04/20094163218569726.html
* China's financial system is healthy and the banks are lending
* China has a fiscal surplus and is financing it's stimulus through that
China's biggest challenge is to increase domestic demand so the country is not as export reliant. This is a tall order. Yes, there were record car sales in March, but the Chinese do not have health plans or social services and continue to sock money away for a rainy day.
http://english.aljazeera.net//business/2009/04/20094163218569726.html
Tuesday, April 7, 2009
Which China is it?
Is China the country of economic strength telling rich nations how to manage their economy or is it a developing country with (tens of) millions of poor?
It's both. China holds $1 trillion in U.S. debt and an additional $1 trillion in other foreign reserves. It is also considered a lower-middle income country, with $936-3,705 in annual per capita income, according to 2007 World Bank figures.
What's interesting is China likes to plays the "we're rich" card when they want to talk about global international policies and the "we're poor" card when asked to ante up to help others or to fight climate change.
http://www.reuters.com/article/newsOne/idUSTRE53501820090406?pageNumber=3&virtualBrandChannel=10452
It's both. China holds $1 trillion in U.S. debt and an additional $1 trillion in other foreign reserves. It is also considered a lower-middle income country, with $936-3,705 in annual per capita income, according to 2007 World Bank figures.
What's interesting is China likes to plays the "we're rich" card when they want to talk about global international policies and the "we're poor" card when asked to ante up to help others or to fight climate change.
http://www.reuters.com/article/newsOne/idUSTRE53501820090406?pageNumber=3&virtualBrandChannel=10452
Wednesday, April 1, 2009
China dialog
The U.S. and China have agreed to "establish a Strategic and Economic Dialogue group" the stated intent is "to tackle the global financial crisis and strengthen the worlds's financial systems".
They may end up talking more about North Korea and Iran.
http://news.bbc.co.uk/2/hi/asia-pacific/7977145.stm
They may end up talking more about North Korea and Iran.
http://news.bbc.co.uk/2/hi/asia-pacific/7977145.stm
Wednesday, March 25, 2009
Careful what wish for
It's just been a few mere months since the eyes of the world were beckoning China to help bail out the world economy. Now China is flexing its political muscle and calling for a new currency to replace the dollar as the global standard.
There's been lots of finger pointing over the current global crisis. Some say the Chinese are to blame by investing heavily in US Treasuries and flooding the market with easy cash - thus lulling the Fed into holding interest rates too low for too long. The Chinese say the Fed was indeed at fault, and those policies were not only misguided, but put the entire global economy at risk.
The Chinese feel that a different reserve currency, overseen by the International Monetary Fund, would help emerging and developing nations better manage their own economies.
http://english.aljazeera.net/business/2009/03/20093253587630765.html
There's been lots of finger pointing over the current global crisis. Some say the Chinese are to blame by investing heavily in US Treasuries and flooding the market with easy cash - thus lulling the Fed into holding interest rates too low for too long. The Chinese say the Fed was indeed at fault, and those policies were not only misguided, but put the entire global economy at risk.
The Chinese feel that a different reserve currency, overseen by the International Monetary Fund, would help emerging and developing nations better manage their own economies.
http://english.aljazeera.net/business/2009/03/20093253587630765.html
Sunday, March 15, 2009
China's anti-monopoly law and Coke
China enacted their first anti-monopoly law in August 2008. The idea was to promote a competitive, fair market.
Enter Coke. It is proposing to take over China's Huiyuan Juice Group. Coke wants to gain ground with the more affluent Chinese.
The deal is awaiting approval. If it goes through, the purchase, valued at 2.4 billion dollars, would be the largest bid by a foreign firm to takeover a Chinese company.
If Coke's bid is rejected on national-interest grounds, it could make tit for tat difficulties for Chinese firms trying to buy abroad.
Legally, there doesn't appear to be a reason to impede the transaction.
"It doesn't raise national security issues, it's just juice," said Susan Finder, a Hong Kong anti-trust lawyer for the US firm Heller Ehrman. "Is Huiyuan a national treasure of a brand?"
However, how long the approval process will take remains unclear."
Source: http://www.chinatoday.com/law/china.law.case.01.htm
Enter Coke. It is proposing to take over China's Huiyuan Juice Group. Coke wants to gain ground with the more affluent Chinese.
The deal is awaiting approval. If it goes through, the purchase, valued at 2.4 billion dollars, would be the largest bid by a foreign firm to takeover a Chinese company.
If Coke's bid is rejected on national-interest grounds, it could make tit for tat difficulties for Chinese firms trying to buy abroad.
Legally, there doesn't appear to be a reason to impede the transaction.
"It doesn't raise national security issues, it's just juice," said Susan Finder, a Hong Kong anti-trust lawyer for the US firm Heller Ehrman. "Is Huiyuan a national treasure of a brand?"
However, how long the approval process will take remains unclear."
Source: http://www.chinatoday.com/law/china.law.case.01.htm
Wednesday, January 28, 2009
It's a matter of confidence
There's lots of reflecting going on at the World Economic Forum in Davos, Switzerland.
And getting to the crux of the matter, the director of the Global Security Research Institute in Keio, Japan, Heizo Takenaka, said “The current situation is something more than a financial and economic crisis,” Mr. Takenaka said. “We face a confidence crisis. Once the confidence of crisis occurs, we need a strong government and central banks.”
Any one from Japan knows of what they speak. A crisis in confidence caused their deflationary recession to last over 13 years.
Chinese Premier, Wen Jiabao, clearly wants to take the optimistic path. “The harsh winter will be gone and spring is around the corner,” he said.
Mr. Wen was also realistic in his assessment, noting the drop in exports and unemployment, but he was clear in his government's 2009 goal of 8% growth. With a stimulus package of 4 trillion yuan, Mr Wen talked about growing domestic demand after "years of being the workshop of the world."
http://www.nytimes.com/2009/01/29/business/29econ.html
And getting to the crux of the matter, the director of the Global Security Research Institute in Keio, Japan, Heizo Takenaka, said “The current situation is something more than a financial and economic crisis,” Mr. Takenaka said. “We face a confidence crisis. Once the confidence of crisis occurs, we need a strong government and central banks.”
Any one from Japan knows of what they speak. A crisis in confidence caused their deflationary recession to last over 13 years.
Chinese Premier, Wen Jiabao, clearly wants to take the optimistic path. “The harsh winter will be gone and spring is around the corner,” he said.
Mr. Wen was also realistic in his assessment, noting the drop in exports and unemployment, but he was clear in his government's 2009 goal of 8% growth. With a stimulus package of 4 trillion yuan, Mr Wen talked about growing domestic demand after "years of being the workshop of the world."
http://www.nytimes.com/2009/01/29/business/29econ.html
Monday, January 26, 2009
Happy Niu Year
It's here! Year of the Ox...
Here's one of my favorite new quotes, "A downturn can be a very good time for restructuring the economy" -
Ma Jiantang, China's National Bureau of Statistics commissioner.
In 2008, China's overall economy expanded 9%. (The last three months of the year were lower at 6.8% expansion).
2007's rate was 13%.
My other favorite quote, (same guy), "Just like the freezing weather we had this morning, it will not last forever."
http://english.aljazeera.net/business/2009/01/200912241324835704.html
Here's one of my favorite new quotes, "A downturn can be a very good time for restructuring the economy" -
Ma Jiantang, China's National Bureau of Statistics commissioner.
In 2008, China's overall economy expanded 9%. (The last three months of the year were lower at 6.8% expansion).
2007's rate was 13%.
My other favorite quote, (same guy), "Just like the freezing weather we had this morning, it will not last forever."
http://english.aljazeera.net/business/2009/01/200912241324835704.html
Saturday, January 24, 2009
International Retailers Continue China Expansion
US retailers are feeling confident about China's continued growth. (Maybe the focus of China's economic stimulus plan on encouraging its citizens to spend has helped). Of course, the validity of Chinese government released data is always under dispute, but the numbers show over 20% growth in December, despite surveys that say Chinese consumers are cutting back.
Thursday's Wall Street Journal reported the following expansion by international retailers:
Ikea - plans 2 stores in 2009, currently has 6 stores in the country.
Walmart - currently has 217 retail stores
Carrefour- plans 28 stores in 2009, up from 22 in 2008.
Tesco (UK) - continued expansion
Parkson Group (Hong Kong - opening 4 or 5 stores, currently have 42 department stores.
Notably, Aeon (Japan), is delaying 100 stores to Feb 2013.
The WSJ suggests that as they did in Tokyo in the 1990s, retailers may take advantage of falling real estate to buy desirable retail spaces, saving them leasing costs in the future.
Thursday's Wall Street Journal reported the following expansion by international retailers:
Ikea - plans 2 stores in 2009, currently has 6 stores in the country.
Walmart - currently has 217 retail stores
Carrefour- plans 28 stores in 2009, up from 22 in 2008.
Tesco (UK) - continued expansion
Parkson Group (Hong Kong - opening 4 or 5 stores, currently have 42 department stores.
Notably, Aeon (Japan), is delaying 100 stores to Feb 2013.
The WSJ suggests that as they did in Tokyo in the 1990s, retailers may take advantage of falling real estate to buy desirable retail spaces, saving them leasing costs in the future.
Monday, January 19, 2009
Stimulus package comparison
A lot of stimulus package numbers are being thrown around, so I'm trying to make sense of them. This is what I've come up with (for now)
Japan:
Under Aso's Cabinet: 64 trillion yen, (over US $700 billion) called "an emergency program of livelihood protection" Combined with an earlier package worked out under former Prime Minister Yasuo Fukuda's Cabinet of 11.5 trillion yen - puts total economic recovery measures at 75 trillion yen (over US $827 billion).
Addressing: the deteriorating job market and stabilizing the financial market
Specifics: offering housing to jobless people and stabilizing the financial market.
help dismissed workers such as temporary workers find housing; encourage employers to maintain employment and address problems concerning cancellations of informal job offers to students.
China
China (Nov 08) $600 billion which includes more government investment in infrastructure, tax deductions for exporters, and bigger subsidies to the poor and farmers.
China's package amounts to 14 percent of its likely gross domestic product (GDP)
US
The Emergency Economic Stabilization Act of 2008, commonly referred to as a bailout of the U.S. financial system: $700 billion passed in Oct 2008. The idea was that $250 billion would be used right away, $100 could be released by Pres Bush and the remaining $350 was to be released by Congressional vote (it was on January 14, 2009). What was actually released and promised, including to the car companies, goes something like this:
December 19, George W. Bush announced that he had approved to provide $13.4 billion now, with another $4 billion available in February 2009General Motors will get $9.4 billion and Chrysler $4 billion.
Separately President-elect Obama proposed as of Jan 14 '09:
$825 billion fiscal recovery plan called the American Recovery and Reinvestment plan.
$550 billion in new spending and $275 billion in tax relief middle class tax cut.
http://www.yomiuri.co.jp/dy/national/20081220TDY02308.htm
Extra! January 2009
Japan:
Under Aso's Cabinet: 64 trillion yen, (over US $700 billion) called "an emergency program of livelihood protection" Combined with an earlier package worked out under former Prime Minister Yasuo Fukuda's Cabinet of 11.5 trillion yen - puts total economic recovery measures at 75 trillion yen (over US $827 billion).
Addressing: the deteriorating job market and stabilizing the financial market
Specifics: offering housing to jobless people and stabilizing the financial market.
help dismissed workers such as temporary workers find housing; encourage employers to maintain employment and address problems concerning cancellations of informal job offers to students.
China
China (Nov 08) $600 billion which includes more government investment in infrastructure, tax deductions for exporters, and bigger subsidies to the poor and farmers.
China's package amounts to 14 percent of its likely gross domestic product (GDP)
US
The Emergency Economic Stabilization Act of 2008, commonly referred to as a bailout of the U.S. financial system: $700 billion passed in Oct 2008. The idea was that $250 billion would be used right away, $100 could be released by Pres Bush and the remaining $350 was to be released by Congressional vote (it was on January 14, 2009). What was actually released and promised, including to the car companies, goes something like this:
December 19, George W. Bush announced that he had approved to provide $13.4 billion now, with another $4 billion available in February 2009General Motors will get $9.4 billion and Chrysler $4 billion.
Separately President-elect Obama proposed as of Jan 14 '09:
$825 billion fiscal recovery plan called the American Recovery and Reinvestment plan.
$550 billion in new spending and $275 billion in tax relief middle class tax cut.
http://www.yomiuri.co.jp/dy/national/20081220TDY02308.htm
Extra! January 2009
Wednesday, January 14, 2009
Asian Robots
The top three countries for robot density (measured as number of industrial robots per 10,000 manufacturing workers) are all Asian - Japan (an eye popping 295), Singapore (169) and South Korea (164).
But when the regional averages are taken into consideration, Asia/Pacific falls to third place (27) behind Europe (50) and the Americas (31). This suggests that the two largest Asian countries, China and India, are way behind the curve.
When I dug a little deeper, I found 2008 numbers showing India and China significantly increased. China increased 14% from 2006 to 2007, while the industrial robot count increased by 11% in India.
See http://www.worldrobotics.org/downloads/2008_executive_summary.pdf for the full report.
http://spectrum.ieee.org/print/7012
But when the regional averages are taken into consideration, Asia/Pacific falls to third place (27) behind Europe (50) and the Americas (31). This suggests that the two largest Asian countries, China and India, are way behind the curve.
When I dug a little deeper, I found 2008 numbers showing India and China significantly increased. China increased 14% from 2006 to 2007, while the industrial robot count increased by 11% in India.
See http://www.worldrobotics.org/downloads/2008_executive_summary.pdf for the full report.
http://spectrum.ieee.org/print/7012
Sunday, January 11, 2009
China 2008 tourism down
2008 was supposed to be a banner tourism year for the China. Remember the Olympics? They were in August, yet, according to the Wall Street Journal (1/9/09), the year ended with an overall drop of two million visitors.
2008 marked the first decline in visitors to China since the 2003 SARS scare.
China's National Tourism Administration reported that there were 130 million inbound travelers in 2008.
This hasn't slowed down the Walt Disney Company's bid to build Shanghai Disneyland, a $3.59 billion theme park. Disney is actually counting on drawing visitors from mainland China itself. (Disney currently operates parks in Tokyo and Hong Kong).
The deal is far from done. China's central government needs to approve the Shanghai proposal and that can take some time. The government may be tempted by the 50,000 new jobs the park could create as China focuses its economic recovery on growing markets within their borders.
----
Wall Street Journal, 1/9/09 and 1/10/09.
2008 marked the first decline in visitors to China since the 2003 SARS scare.
China's National Tourism Administration reported that there were 130 million inbound travelers in 2008.
This hasn't slowed down the Walt Disney Company's bid to build Shanghai Disneyland, a $3.59 billion theme park. Disney is actually counting on drawing visitors from mainland China itself. (Disney currently operates parks in Tokyo and Hong Kong).
The deal is far from done. China's central government needs to approve the Shanghai proposal and that can take some time. The government may be tempted by the 50,000 new jobs the park could create as China focuses its economic recovery on growing markets within their borders.
----
Wall Street Journal, 1/9/09 and 1/10/09.
Monday, December 22, 2008
China's piracy
China has been working toward modernizing their navy for years. Now Somalia's pirates have provided a legitimate excuse for China to flex its muscles and test foreign waters. Member nations of the U.N. Security Council have dispatched vessels to protect their commercial ships from the pirates, and they have asked fellow member, China, to assist.
The hijacking is a serious problem. Of the 100 vessels attacked off the coast of Somalia, 40 have been hijacked.
I suspect that once China enters the waters off the Horn of Africa, they will never leave. China has many African investments and trade relationships. China imports more oil from Angola than Saudi Arabia. These are relationships China wouldn't want its competitors, such as India, to enjoy too easily.
Obviously, the piracy issue is a serious problem, but I doubt China is going to leave African waters even if it is resolved.
http://www.cnn.com/2008/WORLD/asiapcf/12/17/china.pirates/index.html
The hijacking is a serious problem. Of the 100 vessels attacked off the coast of Somalia, 40 have been hijacked.
I suspect that once China enters the waters off the Horn of Africa, they will never leave. China has many African investments and trade relationships. China imports more oil from Angola than Saudi Arabia. These are relationships China wouldn't want its competitors, such as India, to enjoy too easily.
Obviously, the piracy issue is a serious problem, but I doubt China is going to leave African waters even if it is resolved.
http://www.cnn.com/2008/WORLD/asiapcf/12/17/china.pirates/index.html
Sunday, December 14, 2008
Japan, China, S. Korea working together?
Can the economic crisis do what the past 60+years hasn't been able to do ... namely allow three WWII scarred countries to work together? Past meetings have been merely symbolic, with distrust tainting any real outcomes.
Saturday's Fukuoka, Japan, meeting was the first ever trilateral summit. Observers may have thought the meeting was vague, with promises for stimulating the economy and committing to no new trade barriers for the next year.
Yet, just the meeting alone is significant as the three nations, who have barely tolerated one another due to residual emotion and economic rivalries, came together in solidarity.
The most specific summit outcome is that Japan and China agreed to lend foreign currency to S. Korea. S. Korea has struggled the most with the crises. The three countries comprise 75% of the east Asian economy.
The next summit is scheduled for next year in China.
http://english.aljazeera.net/news/asia-pacific/2008/12/200812138361719177.html
http://www.nytimes.com/2008/12/14/world/asia/14japan.html
http://english.aljazeera.net/news/asia-pacific/2008/12/200812138361719177.html
http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_TRILATERAL_SUMMIT_ASOL-?SITE=YOMIURI&SECTION=HOSTED_ASIA&TEMPLATE=ap_national.html
Saturday's Fukuoka, Japan, meeting was the first ever trilateral summit. Observers may have thought the meeting was vague, with promises for stimulating the economy and committing to no new trade barriers for the next year.
Yet, just the meeting alone is significant as the three nations, who have barely tolerated one another due to residual emotion and economic rivalries, came together in solidarity.
The most specific summit outcome is that Japan and China agreed to lend foreign currency to S. Korea. S. Korea has struggled the most with the crises. The three countries comprise 75% of the east Asian economy.
The next summit is scheduled for next year in China.
http://english.aljazeera.net/news/asia-pacific/2008/12/200812138361719177.html
http://www.nytimes.com/2008/12/14/world/asia/14japan.html
http://english.aljazeera.net/news/asia-pacific/2008/12/200812138361719177.html
http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_TRILATERAL_SUMMIT_ASOL-?SITE=YOMIURI&SECTION=HOSTED_ASIA&TEMPLATE=ap_national.html
Tuesday, December 2, 2008
Credit lessons
Most rural Chinese don't know what a credit card is. Yet, to make up for a drop in exports, the Chinese government is encouraging the population to spend to stimulate the economy. They may want to look to South Korea and temper their approach.
In 1999, S. Korea's government worked to get their tightfisted population to borrow and spend to grow the domestic economy. By 2003, S. Korean households had a $2,000 debt average.
Today, at 66% of gross domestic product, S. Korea's household debt is one of the largest in the world. The good news is the delinquency rate is low, a mere 0.5%.
Confucian influenced societies are proud of their habit of saving, and the disgrace of debt is enormous. Chinese farmers compete over who can save more of their income, sometimes saving two-thirds to one-half of their $2,200 annual income.
It'll be interesting to see how vigorously China approaches credit and spending as their economy contracts.
Sources:
http://www.time.com/time/magazine/article/0,9171,552170,00.html
http://www.nytimes.com/2008/12/03/world/asia/03china.html
Wall Street Journal, November 29-30, 2008, p. A5.
In 1999, S. Korea's government worked to get their tightfisted population to borrow and spend to grow the domestic economy. By 2003, S. Korean households had a $2,000 debt average.
Today, at 66% of gross domestic product, S. Korea's household debt is one of the largest in the world. The good news is the delinquency rate is low, a mere 0.5%.
Confucian influenced societies are proud of their habit of saving, and the disgrace of debt is enormous. Chinese farmers compete over who can save more of their income, sometimes saving two-thirds to one-half of their $2,200 annual income.
It'll be interesting to see how vigorously China approaches credit and spending as their economy contracts.
Sources:
http://www.time.com/time/magazine/article/0,9171,552170,00.html
http://www.nytimes.com/2008/12/03/world/asia/03china.html
Wall Street Journal, November 29-30, 2008, p. A5.
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